
How Forex brokers work?
Are they only act as an intermediary between customers and banks? Or, they function as a gaming machine sports book?
Basically, you, the average operator can not negotiate directly with the bank. Need a lot of money to do so. Your broker gets a middle rate of the bank generally based on the volume and charge you with either a flat fee or propagation. Say a quote from the bank on the euro with a 2 pip spread, they could make 4 pips spread and make 2 points ($ 20 for 100,000 $ Traded). Different platforms and different differential commission rates. Research is essential. I trade on a platform that I charge a flat fee of $ 5 per $ 100k and the deviations are typically 1-3 pips on the majors.
Brokers Shocking Truth: ECN, Dealing Desk, Spikes, Spread Manipulation and other dirty tricks…
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